The Stock Market is Complicated, But Making Money is Not!

Menu

Warren Buffett’s 8 Favorite Stocks

Berkshire Hathaway Inc. (BRK.A, BRK.B) CEO Warren Buffett is one of the most iconic investors in the world. Buffett has earned the nickname the “Oracle of Omaha” for his consistent stock-picking performance over the decades and his calm, optimistic demeanor through thick and thin in the markets. As of the end of 2017, Buffett was the fourth wealthiest individual in the world, with a net worth of about $83.2 billion. Fortunately for investors who want to follow in Buffett’s value investing footsteps, Berkshire publicly discloses its stock holdings each quarter. Here are Warren Buffett’s 8 favorite stocks.

Wells Fargo

As of Buffett’s annual shareholder letter on Saturday morning, Wells Fargo & Co (WFC) is Berkshire’s single largest holding. Buffett reported holding 482.5 million shares of Wells Fargo worth about $29.2 billion, which Berkshire acquired at an average purchasing price of about $24.53 per share. However, Wells’ place at the top may not last for long. Buffett has repeatedly expressed interest in keeping Berkshire’s Wells Fargo stake below 10 percent ownership of the company. Berkshire would be subject to a higher level of regulatory scrutiny if it exceeds this big bank ownership threshold. Berkshire currently owns a 9.9 percent stake.

Apple

Apple, Inc. (AAPL) may not be Buffett’s top holding as of the shareholder letter, but he’s been consistently adding to his massive $29.0 billion stake in the iPhone maker in recent quarters. In fact, Buffett bought another 31.2 million shares in the fourth quarter of 2017. Berkshire now holds a total of 166.7 million shares, which represent 3.3 percent ownership of Apple. Berkshire reportedly paid an average price of about $125.73 for its Apple shares. Buffett has historically shied away from tech stocks, but he said last year he believes Apple will soon become the world’s first $1 trillion company.

Kraft Heinz

Berkshire owns 325.4 million shares of Kraft Heinz Co (KHC) worth about $25.3 billion. Buffett paid an average price of roughly $30.11 per share. Berkshire first acquired an 8 percent stake in Kraft Foods in 2008. Berkshire and partner 3G Capital announced a $23 billion buyout of Heinz in February 2013. A little more than two years later, 3G and Buffett announced a merger between Kraft and Heinz, making Kraft Heinz the fifth largest food company in the world at the time. Berkshire was initially the majority owner of Kraft Heinz, but its stake is now only about 26.7 percent.

Bank of America

Berkshire currently holds 700.0 million shares of Bank of America Corp (BAC) stock worth about $20.6 billion. Buffett’s purchase of Bank of America shares was far from conventional. Buffett first invested $5 billion in Bank of America back in 2011 when the bank was struggling with liquidity, acquired preferred shares of Bank of America stock that could be converted to common shares at any time. When Buffett exercised his warrants in mid-2017, he acquired his Bank of America shares at an incredible price of about $7.15 each. Berkshire now owns 6.8 percent of the bank.

Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!